Subprime Problems Hit Massachusetts

An UMass Boston economics professor who recently completed his seventh annual study on subprime lending in Massachusetts believes more than 20,000 of the high-cost loans originated in the state in the last two years alone and issued primarily to individuals with poor credit will eventually end up in foreclosure, the Boston Herald reported March 18, 2007.

"The 20,000 number is based on Campen's estimate of the number of subprime loans originated statewide in the past two years - about 120,000 - and a projection by the nonprofit Center for Responsible Lending that 17.6 percent of such loans in Massachusetts will eventually end up in foreclosure."

Some people who end up in foreclosure may hold onto their homes by refinancing or finding ways to repay debts before actually being foreclosed on.

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